Sathavahana Ispat approves preferential issue

The Board of Directors of Sathavahana Ispat Ltd at its meeting held on November 21, 2013, has considered and approved the preferential issue.

The Board approved subject to approval of Members and other statutory authorities, if any, increase in the Authorised Share Capital from the present Rs. 40,00,00,000/- (Rupees forty crores only) to Rs. 60,00,00,000/- (Rupees sixty crores only) by creation of 1,25,00,000 additional equity shares and Seek approval of Members for alteration of capital clause V(a) in the memorandum of Association, of the company by increasing the Anthorised Share capital from the present Rs. 40,00,00,000/- (Rupees forty crores only) to Rs. 60,00,00,000/- (Rupees sixty crores only) and for alteration of capital clause 3 in the Articles of Association of the Company by increasing the Authorised Share capital from the present Rs. 40,00,00,000/- (Rupees forty crores only) to Rs. 60,00,00,000/- (Rupees sixty crores only).

The Board approved subject to approval of Members and other statutory authorities, if any, Increase in the shareholding limit of FIIs and its sub-accounts from statutory limit of 24% to 35% of paid capital of the Company.

Subject to approval of Members and other statutory authorities, if any, issue of 25,20,000 Equity Shares by private placement on Preferential basis to Ganapati Holdings Pte. Ltd, Singapore, a concern of promoters Group at issue price of Rs. 36/- (including premium of Rs. 26/-) per Equity Share which account for 4.95% of expanded paid up capital of the Company. The Promoters' Group holding will come down front 42.42% to 36.95% on the expanded capital of the Company. The issue price of Equity Share is higher than the price determined under SEBI Regulations for pricing of preferential issue with reference to the relevant date November 19, 2013 i.e. 30 days prior to the date of Extraordinary General Meeting.

Subject to approval of Members and other statutory authorities, if any, issue of 99,80,000 Equity Shares to Plutus Terra India Fund, Mauritius and Antara India Evergreen Fund Ltd, Mauritius both of whom are SEBI registered Foreign Institutional Investors (FII) and their SEBI approved sub-accounts as the case may be, by Private Placement on Preferential allotment basis at issue price of Rs. 36/- (including premium of Rs. 26/-) per Equity Share. Each FII holding will be 9.80% on the expanded capital of the Company. The issue price of Equity shares is higher than the price determined under SEBI Regulations for pricing of preferential issue with reference to the relevant date November 19, 2013 i.e. 30 days prior to the date of Extraordinary General Meeting.

The issue proceeds of Equity Shares are to part finance project cost of the Integrated Project which has gone up to Rs. 587 crores from the existing Rs. 343.74 crores consequent to change in the scope of project for manufacture of Ductile Iron Pipes (from 190,000 tpa to 210000 tpa), Pipe fittings (25000 tpa), Captive Thermal Plant (from 15 mw to 30 mw), Sinter Plant (298,800 tpa) Modernization of Air preheaters, Modernisation of Blast Furnace (completed) and other business needs.

The Board approved proposal to call an Extraordinary General Meeting on December 19, 2013 for the approval of the Preferential issue of Equity Shares by the Members of the Company.

Shares of Sathavahana Ispat Ltd was last trading in BSE at Rs.30, down by Rs.0.05 or 0.17%. The stock hit an intraday high of Rs.30 and low of Rs.30.

The total traded quantity was 300 as compared to 2 week average of 2093.

Source : Equity Bulls

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